Bombay HC quashes State govt's resolution to expend teachers' salaries through Co-op Bank

Mumbai, February 10: Continuing the custom of paying salaries to school teacher through Union Bank of India, the Bombay High Court quashed the need of paying salaries through Mumbai District Co-operative Bank.

 

The Government Resolution of 2017 made Mumbai District Co-operative Bank (MDCB) the official bank for disbursal of salaries of teachers in government aided-schools in Mumbai. The decision was taken by the divisional bench who thought that they did not find any validation behind issuance of such an order.

The state had paid salaries to 15,000 out of 27,000 teachers in Mumbai. The remaining refused as they questioned the bank's track record contended that nationalized banks were safer. The bench said it found no rationale in the state's decision to abruptly change a policy when the system was working smoothly.

The court said the same person, who as opposition leader, found the bank's functioning "hazardous" and "full of irregularities," thought it fit now for substitution of the system. The court clarified it had not expressed any opinion about the bank's condition or its functioning.

The teachers and official authorities have declined to open a new account in the Mumbai bank and had insisted that the old method of receiving salaries through Union Bank be continued. Their contention was that Nationalised Banks were safer.